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Cabinet officials

Egypt Secures $1.128bn Development Financing for Sustainable Transport Projects

Strategic Insights

— 2 min read

Egypt's Minister of International Cooperation, Rania Al-Mashat, and Flavia Palanza, Director Operations in Neighboring Countries at the European Investment Bank (EIB), have signed a $1.128bn development financing agreement for several sustainable transport projects in Egypt. The projects, which include converting the Abu Qir train line into a metro line, rehabilitating the Al-Raml tram line, and rehabilitating the Cairo Metro Line 2, are set to strengthen Egypt's transport infrastructure and enhance its transformation strategy for sustainable transport.

Key Takeaways:

  • The development financing agreement is worth $1.128bn and covers three sustainable transport projects in Egypt.
  • The projects include converting the Abu Qir train line into a metro line with a length of 22 km, rehabilitating the Al-Raml tram line with a length of 13 km, and rehabilitating the Cairo Metro Line 2 with a length of 23 km.
  • The funding is part of a larger financing package worth $1.9bn approved by the EIB last July, which includes $800m dedicated to supporting small- and medium-sized enterprises (SMEs) during the COVID-19 pandemic.
  • A further $1.1bn has been dedicated to support sustainable public transport and infrastructure development.
  • The projects will be supported through the EIB's Economic Resilience Initiative and the EU Neighbourhood Investment Programme (EU NIP), which provide grants for technical assistance and advisory support.
  • The agreement aims to achieve several UN Sustainable Development Goals (SDGs), including Goal 11 for Sustainable Cities and Communities, Goal 8 for Decent Work and Economic Growth, Goal 13 for Climate Action, and Goal 17 for Partnerships for the Goals.
  • The project is expected to benefit more than half a million passengers a day and will help Egypt meet several social and environmental targets.

Statistics:

  • $1.128bn: The value of the development financing agreement signed by Rania Al-Mashat and Flavia Palanza.
  • $1.9bn: The value of the financing package approved by the EIB last July.
  • $800m: The amount dedicated to supporting SMEs during the COVID-19 pandemic.
  • $1.1bn: The amount dedicated to support sustainable public transport and infrastructure development.
  • 22 km: The length of the Abu Qir train line conversion to a metro line.
  • 13 km: The length of the Al-Raml tram line rehabilitation.
  • 23 km: The length of the Cairo Metro Line 2 rehabilitation.

Sources:

  • [1] Al-Mashat, R., & Palanza, F. (2022). Egypt and EIB sign $1.128bn development financing agreement for sustainable transport projects.
  • [2] Ministry of International Cooperation's annual report for 2020.
  • [3] European Investment Bank (EIB). (2022). EIB supports Egypt's transport sector with €1.128 billion financing package.

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